Category: Bankruptcy
In this article, you can discover… The background behind the “free rider problem” in debt settlement programs. How this problem can impact settlements with creditors. How an experienced bankruptcy attorney can help you avoid these pitfalls. What Is The “Free Rider Problem” In Debt Settlement? I mentioned this problem in our last succession of questions, so answering it again is, I suppose, a bit pleonastic. If you have, let’s say, 10 creditors and you’re trying to negotiate with each one individually (whether you’re doing it directly or through some intermediary) you might come across a creditor that says, “No, I’m… Read More →
In this article, you can discover… What debt settlement is, and how it’s marketed. Whether debt settlement halts wage garnishment. Why Chapter 13 Bankruptcy offers unique benefits over debt settlement. What Exactly Is Debt Settlement, And How Is It Marketed To Orange County Residents? A company that does this sort of thing will tell you, “We’ll work things out with your creditors. We’ll negotiate with them so that you can come into a program that’s manageable. You’ll be able to pay your debts, perhaps at a reduced amount over time, and this will take care of all of your problems.”… Read More →
In this article, you can discover… How a “material change” in income is understood by trustees. What happens if your disposable income decreases during bankruptcy. How an attorney can help you modify payment plans as your resources change. What Qualifies As A “Material Change” In Income? Now we’re in a vague realm. What is “material”? There aren’t any posted standards and there’s no case law that states “this amount is material and this amount is nominal.” However, I do remember attending a continuing legal education program conducted by the Chapter 13 Trustee in Orange County, a nice guy named Amran… Read More →
In this article, you can discover… If annual bonuses are treated differently than base salary increases in Chapter 13. How to account for large or regular bonuses during bankruptcy. Whether it’s possible to shield or protect a bonus from bankruptcy. Are Annual Bonuses Treated Differently Than Base Salary Increases? Any annual bonuses will be reflected on your income tax return. A Trustee may assert that you must share an annual bonus with your creditors unless you’re already in a 100% repayment plan. It may be that by the time the Trustee finds out about the annual bonus, you’ve already spent… Read More →
In this article, you can discover… Whether you are required to report a raise to a bankruptcy trustee. If a raise may increase your monthly payment amounts. What to do if your raise is temporary or performance-based. Am I Required To Report A Raise To The Bankruptcy Trustee? That’s an interesting question because things are a little vague here. In theory, yes, you should keep the Chapter 13 Trustee appraised of what is going on. But remember that each year that you’re in bankruptcy, you are required to send copies of your tax returns to the trustee no later than… Read More →
In this article, you can discover… How bankruptcy courts define “self-employed” in California. How fluctuating monthly incomes are handled by the Bankruptcy Court. Ways to help you manage bankruptcy payments if you have irregular or fluctuating income. What Does It Mean To Be “Self-Employed” In The Eyes Of The Bankruptcy Court? Let’s contrast two things. You are working for ABC Industries. You get W-2 income. You’re getting a paycheck each month or every two weeks, or however frequently you’re paid. You are not self-employed. You are employed by an employer. Now, let’s say you have a business and you’re selling… Read More →
In this article, you can discover… How Chapter 13 can help landlords in debt retain their properties. Whether you can keep collecting rent during Chapter 13 bankruptcy. How your rental income may impact a repayment plan. How Can Chapter 13 Help Me Catch Up On Mortgage Arrears Without Losing My Rental Property? In Chapter 13, one of the provisions that we have in the Bankruptcy Code is that you can use the Chapter 13 plan to cure a default. If you’ve fallen behind on mortgage payments, what we can do is propound a Chapter 13 plan of reorganization and put… Read More →
In this article, you can discover… Whether you can file for bankruptcy if your income fluctuates. Whether seasonal workers are eligible for bankruptcy in California. What happens should your income increase significantly during bankruptcy. Can I File For Chapter 13 Bankruptcy If My Income Fluctuates? The Bankruptcy Code in section 109(e) says that Chapter 13 is available only for someone with a regular income, and then it lists two debt ceilings – one for secured debt, the other for unsecured debt – to determine eligibility for Chapter 13 protection. What do we mean by regular income? Does it have to… Read More →
In this article, you can discover… How bankruptcy will impact your credit score. Whether it’s possible to rebuild your credit score after filing for bankruptcy. The possible impacts of filing for bankruptcy on obtaining future loans. How Will Chapter 13 Bankruptcy Impact My Credit Score? While Chapter 7 Bankruptcy is primarily meant to eliminate all of your debt in one fell swoop over the course of 5 or 6 months, Chapter 13 Bankruptcy sets you up with a plan to repay your debts over several years. These payment plans are generally administered by a bankruptcy court and require monitoring by… Read More →
In this article, you can discover… The differences between a secured and an unsecured debt. The various kinds of liens that exist and their impact on bankruptcy. The process and implications of reaffirmation for personal debt. What Is The Difference Between An Unsecured Debt And A Secured Debt? The primary difference between unsecured and secured debt is whether or not the debt is secured by collateral. Secured Debts A secured debt is secured by a specific asset that serves as collateral. If you default on the payments, the creditor can repossess the asset. Common examples include car loans and home… Read More →
